Correlation Between ZKB Platinum and ZKB Silver
Can any of the company-specific risk be diversified away by investing in both ZKB Platinum and ZKB Silver at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ZKB Platinum and ZKB Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZKB Platinum ETF and ZKB Silver ETF, you can compare the effects of market volatilities on ZKB Platinum and ZKB Silver and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ZKB Platinum with a short position of ZKB Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZKB Platinum and ZKB Silver.
Diversification Opportunities for ZKB Platinum and ZKB Silver
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ZKB and ZKB is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding ZKB Platinum ETF and ZKB Silver ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKB Silver ETF and ZKB Platinum is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ZKB Platinum ETF are associated (or correlated) with ZKB Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKB Silver ETF has no effect on the direction of ZKB Platinum i.e., ZKB Platinum and ZKB Silver go up and down completely randomly.
Pair Corralation between ZKB Platinum and ZKB Silver
Assuming the 90 days trading horizon ZKB Platinum ETF is expected to generate 1.62 times more return on investment than ZKB Silver. However, ZKB Platinum is 1.62 times more volatile than ZKB Silver ETF. It trades about 0.15 of its potential returns per unit of risk. ZKB Silver ETF is currently generating about 0.14 per unit of risk. If you would invest 26,310 in ZKB Platinum ETF on May 24, 2025 and sell it today you would earn a total of 5,290 from holding ZKB Platinum ETF or generate 20.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZKB Platinum ETF vs. ZKB Silver ETF
Performance |
| Timeline |
| ZKB Platinum ETF |
| ZKB Silver ETF |
ZKB Platinum and ZKB Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZKB Platinum and ZKB Silver
The main advantage of trading using opposite ZKB Platinum and ZKB Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZKB Platinum position performs unexpectedly, ZKB Silver can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ZKB Silver will offset losses from the drop in ZKB Silver's long position.The idea behind ZKB Platinum ETF and ZKB Silver ETF pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |